The Cost Reduction Monitoring Framework (CRMF) takes a structured approach to assess the progress of cost reduction in UK offshore wind projects against key milestones. It was initiated in 2014 by the Offshore Wind Programme Board and the members of the Offshore Wind Industry Council.
The framework was designed by ORE Catapult in conjunction with the Crown Estate. Progress is tracked against milestones that assess the potential of innovations in technology, supply chain and finance to support cost reduction.
CRMF is focussed on the UK market but incorporates evidence from activity worldwide, particularly in the EU. This is the third year that the CRMF has been implemented and the use of a consistent approach allows direct year-on-year comparisons that provides the sector and policy makers with a firm basis for informed decisions.
The CRMF comprises a qualitative and a quantitative assessment:
- The quantitative assessment uses owners’ project-specific data declared at FID and Works Completion to calculate an industry average LCoE.
- The qualitative assessment uses primary market research (questionnaires and interviews) and secondary market research (existing data and analysis) to assess industry progress against pre-agreed milestones and provides an outlook towards 2020 targets.
To ensure anonymity of commercially sensitive data, the Quantitative Assessment can only be carried out when there are sufficient projects reaching FID or Works Completion in the given year. For CRMF 2016 both a Quantitative Assessment and a Qualitative Assessment were conducted.